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Abbey Mortgage Bank records 142% growth in gross earnings

Abbey Mortgage Bank cleared of insider trading

Abbey Mortgage Bank, one of the primary national Mortgage banks in Nigeria has presented its 2021 annual report and accounts to the company’s shareholders, recording 142 percent increase in gross earnings.

Highlights of the company’s financial results show that its gross earnings grew by 142 percent to N3.68 billion in 2021, as against N1.52 billion recorded in the same period of 2020.

Whilst the company’s operating income grew by 104 percent to N1.99 billion, higher than N0.99 billion figure of the previous year, the operating expenses increased by 9 percent to N1.52 billion up from N1.39 billion recorded in 2020, “reflecting management’s optimization of expenses while achieving improved staff welfare, increased manpower and business expansion activities.”

Presenting details of the results in his statement at the company’s 30th Annual General Meeting (AGM) In Lagos recently, Mazi Emmanuel Kalu, chairman, board of directors, expressed happiness on the company’s performance for the year. “I am extremely proud of the progress we made in the last 12 months and the outcome that continues to validate our strategic direction.”

He said, “Two years ago, the management of Abbey with the support of the Board made some strategic decisions towards addressing legacy delinquent assets…. We ramped up recovery efforts which led to a net write-back of N180 million against a net credit loss of N3.8 billion in 2020, while Pre-Tax Profit at the end of the year stood at N661 million, lower than the N2.4 billion figure of 2020.

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“Our loans and advances grew by 28 percent to N6.2 billion during the review period as against N4.7 billion recorded in the same period in 2020, while customers, deposits grew by 45.4 percent to N21.2 billion in 2021, up from N14.6 billion reported in 2020.

Reviewing the firm’s financial position for 2021, Mobolaji Adewumi, managing director/ chief executive officer, said the company’s total Assets grew by 86.1 percent to close at N34.5 billion from N18.5 billion In 2020.

He said the company also recorded significant growth in customer deposits with 45.4 percent growth from 14.6 billion in 2020 to N21.2 billion in the review year, adding that Placements also grew by 177.2 percent from N8.7 billion in 2020 to N24.7 billion in 2021, and shareholders’ funds up by 107 percent from N3.3 billion in 2020 to N6.9 billion in 2021.

The major factors that contributed to the company’s performance, according to Adewumi, include recovery of Legacy Loans, increased interest income from growing Loans and advances, fees and commissions, as well as other incomes and writeback on credit facilities.

On the company’s Strategic Activities, the managing director/CEO said, “Due to our absolute resolve to our vision and transformation agenda, we recorded significant mileage in delivery on our strategic objectives for the year by consolidating our previous performance.”